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Allarity Encourages Shareholders to Vote FOR the Reverse Stock Split and Decrease in Authorized Shares
Boston (July 24, 2024)—Allarity Therapeutics, Inc. (“Allarity” or the “Company”) (NASDAQ: ALLR), a Phase 2 clinical-stage pharmaceutical company dedicated to
About this update from Allarity Therapeutics, Inc.
[{"type":"text","content":"Boston (July 24, 2024)—Allarity Therapeutics, Inc. (“Allarity” or the “Company”) (NASDAQ: ALLR), a Phase 2 clinical-stage pharmaceutical company dedicated to developing personalized cancer treatments, encourages its stockholders to participate actively in the upcoming annual meeting of stockholders scheduled on July 26, 2024. The Company’s Board of Directors has put a proposal before stockholders for a reverse stock split. Allarity has requested approval of the reverse stock split to regain and sustain compliance with Nasdaq requirements. The reverse stock split is essential to enabling compliance with this objective. If the reverse stock split is not approved by the Company’s stockholders, the Company’s common stock may be delisted from Nasdaq. Put simply, a Nasdaq delisting could complicate stockholder’s ability to trade the Company’s common stock, impact its stock price and affect stockholder’s ability to buy or sell when desired. Therefore, the Board of Directors emphasizes the importance of this stockholders’ vote, specifically urging for a positive vote FOR the reverse stock split as well as FOR the decrease in authorized shares. If you have previously cast your vote against these proposals, we strongly recommend reconsidering your position and voting in favor of these proposals. Allarity’s management team is committed to developing personalized cancer treatments. The Board of Directors believes that the reverse stock split and decrease in authorized shares are instrumental for several reasons, including: Maintenance with Nasdaq Listing Status: If the reverse stock split proposal is not approved by the Company’s stockholders, the Company’s common stock may be delisted from Nasdaq. Maintaining a Nasdaq listing is crucial for investor confidence, potential investment inflows, and to maintain liquidity in the Company’s common stock; andDecrease Authorized Shares to Eliminate Certain Negative Effects: Future issuances of common stock or securities convertible into common stock could have a negative impact on our earnings per share and book value per share and would dilute the voting power and ownership of our existing stockholders. Having a larger number of authorized shares results in higher Delaware franchise tax obligations. Failure to secure approval for the reverse stock split may hinder management’s ability to execute it...